CM-MA-114 The Allocation of Charge Numbers

Table of Contents

1. Purpose
2. General
3. Responsibilities
4. Procedure
5. Flowchart
6. References
7. Attachments

1. Purpose

This procedure is intended to serve the following purposes:

• · to define the charge number structure;
• · to establish the methods for input into the administrative system;
• · to define responsibilities for charge numbers allocation.

This procedure is applicable to Company office and its affiliates in Germany/Italy/France.

2. General

2.1 Policy

All hours and expenses shall be charged to an authorized “Charge Number”. This is an essential element in our administrative systems as the means to identify and collect time and expenses of all activities within the company.

Note :     Hours cannot be booked or expenditures cannot be made until charge numbers are opened and Job Master File is updated.

2.2 Definitions

“Job Master File”:  A file of information for reporting and control purposes.  This file is used in the accounting systems to validate and accumulate time and expenses against charge numbers.

2.3 The Charge Numbers are Structured as follows:

Intercompany

3. Responsibilities

The responsibility for the issuing and closing of project contract numbers for projects and charge numbers for others is as follows:

The Project Accounting Department is responsible for input to the Job Master File.

4. Procedure

4.1 Opening Numbers

4.1.1 Intercompany

Intercompany, i.e. Company office and its affiliates in Germany/Italy/France services to other Company offices (except the London office) shall be registered in the Job Master File.

Upon request to open an Intercompany charge number, The Manager Project Accounting, upon approval of the General Manager, will open a charge number (RX0001 etc).  Charge numbers are assigned sequentially.

The request shall include: scope of work, requesting office, estimated manhours.

4.1.2 Projects

Upon award of the Project to Company office and its affiliates in Germany/Italy/France, the Manager Contracts will instantly issue a "Sales Order Form" (ref. 6.1), which defines the Project Contract number (see Attachment 1). Upon receipt of the Sales Order, the Manager Project Accounting will add the Project contract numbers into the job master file.

Project Contract Number Extensions

The Project Manager in conjunction with the Manager Project Accounting and Manager Cost Engineering is responsible for the initiation of all Project Contract number extensions by completing form “Allocation of Extension to project Contract Numbers” (ref. 6.5); see also Attachment 1.

A copy of the form is sent to the Manager Project Accounting for input into the Job Master File.

4.1.3 Proposal Numbers

Upon initiation of any proposal effort the responsible Sales Manager will instantly issue a “Job Prospect Analysis” (JPA) form which defines the proposal number, the Client and the job title (ref. 6.1)  Numbers are assigned sequentially by the Manager of Sales.

4.1.4 Special Tasks

With yearly budget establishment, special task charge numbers are requested by departments. Allocation of charge numbers, after approval by the General Manager, will be by the Manager General Accounting.

4.1.5 Other Overhead Charges

Other overhead numbers will be assigned by the Manager General Accounting after approval of the General Manager.

4.2 Close-out of Charge Numbers

A Project Charge number has to be closed-out as soon as conditions so warrant.  For Projects (customer contracts), see Project Close-out Procedure, ref.6.3.

Form (ref. 6.4) will be used for all other charge numbers.

4.3 Examples

In principle :

Project numbers are used for:

• · to allow for filing/grouping of documents from different contracts which belong together (e.g. a project with a phase 1 - basic engineering - under one contract and phase 2 under another contract).

Contract numbers are used for:

• · document identification (requisitions, drawings)
• · executive summary reporting

Charge numbers are used for:

• · allocation of cost (weekly time report bookings, reproduction, communication, expense reports).

5. Flowchart

Click image to pdf:

6. References

7. Attachments

1.       Project (charge) Numbering Structure.

(Project (Charge Numbering Structure)

Please see hard copy for text of Attachment 1

att1 (not available, to be created on the project).